• Mohammad turned world gold prices over the past month. Plot: Goldprice*

Kitco News's last weekend survey with bank managers, analysts and investors showed that optimism psychology had returned. As a result, 75% of the participants predicted the price of gold to rise this week. Only 17% remarked the price dropped and 8% claimed that the market would pass.

Marc Chandler - Executive Bannockburn Global Forex remarked the gold price was restored due to the expectations of the Middle East suspension order being extended. "If the price of crossing the region $4585 a ounce, the technology signal of the market will improve," he said.

Rich Checkan - Chairman and Director of Operations at Asset Strategies International - also continues to bet up prices. "If rumors of a truce between the US and Iran are true, the gold will rise. This is the model we've seen since February. The fighting caused the price of oil to increase, inflation increased, pulling the risk of increasing interest rates. Peace will make things go the opposite way," he remarked.

Naeem Aslam - The investment director at Zaye Capital Markets - also optimistic, but given that the market is being balanced between the two opposing signals, is that the geopolitical tension and inflation pressure remains high.

Aslam claimed that gold is not only responding to inflation but also being affected by sea transport conditions, energy risks, trust in the dollar and the need for shelter. He noted recent U.S. statistics "supporting the base of gold due to inflation still higher than the target while the labour market is cooling". However, the situation is not enough to increase the momentum.

Alex Kuptsikevich - senior market analyst at FxPro again predicted the gold price could be reduced. "The price of gold fell below $4,400 and returned to the once recorded area during the March fall. If this landmark is broken, the market can be down to $4,000,100", he remarked. Kuptsikevich also argues that the current recovery is difficult to maintain lasting.

CPM Group's analysis group also offers the offer of sale, with the price goal in the next two weeks of $4,375. "The current economic conditions are not as negative as they were a few months ago. Some investors have closed their word and pressure to buy less in short term", analysts say. However, they also warned that any adverse economic or political developments could pull back the demand for gold.

Next week, investors will focus on a series of U.S. economic statistics to assess Fed interest rates. Notable reports include Buyer's House Index (PMI), job report and weekly unemployment application number.

Teau Thu * According to Kitco, Reuters (2011)